Future of the Kenyan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Future of the Kenyan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Kenya spent an average of 5.1% of its allocated defense budget on capital expenditure (CAPEX) during 2015-2019. During the forecast period the country is expected to invest around 8.6% of its defense budget on CAPEX. On a cumulative basis, Kenya’s CAPEX during the historical period amounted to US$283.7 million and the country is forecasted to invest around US$540.4 million over the forecast period.

Kenya has one of the most powerful armed forces in East and Central African region. Kenya’s defense expenditure during the historical period has been mainly driven by the procurement of small arms, aircraft, artillery, and armored vehicles. The country’s defense budget increased at a CAGR of 5.71% from 2015 to 2019. Kenya’s defense expenditure amounted to US$0.9 billion in 2015, which increased to an investment of US$1.1 billion in 2018. Kenya’s defense budget is valued at US$1.2 billion in 2019 and is anticipated to grow at a CAGR of 2.76% during the forecast period to reach US$1.3 billion by 2024.

Kenyan homeland security (HLS) expenditure will grow at a CAGR of 0.64% over the forecast period, increasing from US$1.1 billion in 2020 to US$1.2 billion by 2024. Kenya’s HLS expenditure is primarily driven by its needs of prevention of internal ethnic conflicts, controlling narcotics trade to and from Kenya, eliminating human trafficking, and prevention of terrorist attacks on civilian targets.

Due to its lack of domestic industrial manufacturing capacity, Kenya will largely be dependent on imported military equipment to competently handle the challenges mentioned above. Although Kenya is capable of producing small arms such as pistols, shotguns and rifles, it has been largely dependent on external suppliers for most of its advanced weapon systems. Between 2014 and 2018, Serbia, China, and the US emerged as key suppliers for defense equipment to Kenya with small contribution from countries such as Germany and Jordan.

Corruption is endemic within most of the institutions in Kenyan Government, and the defense sector is also not immune to it. Corruption acts as a hindrance for foreign suppliers interested in entering the Kenyan market as it often leads to operational delays as well as increased cost of doing business. For example, in 2012-2013 serious irregularities were observed in a deal for the procurement of 181 APC vehicles amounting to around KES8 billion.

The report "Future of the Kenyan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies and key news.

Companies mentioned: Lockheed Martin, Lockheed Sikorsky, Construcciones Aeronáuticas SA (CASA)/ IPTN, Korean Aerospace Industries, Boeing (McDonnell Douglas) , Samsung Techwin, Hyundai Rotem, Howaldtswerke-Deutsche Werft (HDW)- Thyssenkrupp Marine Systems, BAE, General Atomics Aeronautical Systems, Otokar, Roketsan,Makina ve Kimya Endüstrisi Kurumu (MKEK), Aselsan, Turkish Aerospace Industries (TAI), Havelsan, Tusas Engine Industries (TEI), FNSS Defense Systems Company, Istanbul Shipyard

Scope

The report provides an in-depth analysis of the following -

• The Kenya defense industry market size and drivers: detailed analysis of the Kenyan defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.


• Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.


• Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years.


• Market opportunities:list of the top ten defense investment opportunities over the next 5 years.


• Competitive landscape and strategic insights: analysis of the competitive landscape of the Kenyan defense industry.

Reasons to Buy

• This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Kenyan defense industry market trends for the coming five years.


• The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.


• Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector.


• A deep qualitative analysis of the Kenyan defense industry covering sections including demand drivers, key trends and latest industry contracts.